Annual Investment Allowance

The Annual Investment Allowance enables sole traders, partnerships and companies to write off the cost of acquiring new or used equipment, machinery and commercial vehicles to a value of £100,000 before this tax year ends on 5^th April 2012.

The allowance can’t be carried forward so it really is a case of use it or lose it.

Next year’s allowance is reduced to £25,000.

Most items of business equipment qualify including:

• Computers & IT
• Audio Visual Equipment
• Machinery & engineering tools
• Manufacturing & production equipment
• Office furniture
• Specialist equipment for dentists, doctors, vets and opticians
• Commercial vehicles

Can I finance the equipment?

Yes.  All you need is enough cash to cover the VAT payment on the cost of the goods together with the minimum deposit or advance payment.

It’s important however to make absolutely certain that the right type of agreement is used.

For example, a lease purchase structured in the right way will enable you to claim the allowance but other types of lease will not.

Where can I get help?

We recommend that you discuss the matter with your accountant or visit the Inland Revenue website if you need clarification as to whether or not an item of capital expenditure will qualify and how this would affect your business:

http://www.hmrc.gov.uk/manuals/camanual/ca23084.htm

Getting advice on the right finance option

At TeleLease we have just the right type of finance to enable you to acquire your new equipment and take advantage of the Annual Investment Allowance.  Our rates are competitive with most commercial banks and we can usually finance assets starting at £5000 with no upward ceiling.